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Each day, a FedEx competitor processes approximately 85,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a five-day week (see the “FedEx: Measuring Service Performance” box): These values are hypothetical and do not reflect any real company’s actual performance.

Complaints reopened: 125

Damaged packages: 18

International: 102

Invoice adjustments: 282

Late pickup stops: 209

Lost packages: 2

Missed proof of delivery: 26

Right date late: 751

Traces: 115

Wrong day late: 15

Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. How might such an index be used in other organizations, such as a hotel or automobile service facility?

Operation Management, Management Studies

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